Service Integration and Management Market to Reach $57.6 Billion by 2023

The major factors responsible for the high growth of the market are cost reduction and value enhancement, and service quality enhancement leading to process efficiency. Improvement in service quality leads to smoother flow of end-to-end processes, which include maintaining coordination between the customer organization and service providers and enabling the customer organization to easily switch between the service providers, if needed, to ensure quality. This not only ensures consistent management of services and access to top-notch service technologies but also allows sharing of knowledge and continual improvement in services.

The service integration and management market is categorized into technology and business; of which, the business category is projected to witness higher growth during the forecast period. This is because of the increasing investments in governance strategies and procurement activities by many global players. Based on the organization type, large enterprises are expected to continue generating a larger share in the market revenue, as compared to small and medium enterprises (SMEs).

On the basis on service, the service integration and management market has been categorized into consulting and implementation; assessment and advisory; and integration and automation. Among these, consulting and implementation services are expected to continue holding the largest share in the market in the coming years. Based on industry, the market is divided into telecom and IT; BFSI; retail and manufacturing; energy and utility; and transportation and logistics, out of which, the telecom and IT industry is expected to continue generating the largest revenue in the market.

Europe is expected to continue remaining the largest SIAM market

Europe is expected to continue being the largest service integration and management market in the forthcoming years, on account of the growing need of organizations to adapt their IT system infrastructure to the changing information services environment. Because of the increasing usage of SaaS and IaaS cloud services by the European companies, the demand for multi-supplier management models is also growing in the region.

Cost efficiency and value enhancement offered by SIAM is the key growth driver

Service integration in any business process incurs additional costs to an organization, irrespective of it being provisioned externally or internally. The adoption of multi-supplier management models leads to the optimization of the cost and increase in the service value for the organization.

The global service integration and management market is being driven by increasing preference of companies to adopt this model on account of its cost saving and service value improvement features. The cost of service management for any organization gets reduced with the adoption of this model because of the innovative technologies it brings to the organization, in addition to proper use of skilled and scarce resources and reduction in process execution costs.

Lack of flexibility in business models is offering lucrative opportunities to SIAM players

Lack of flexibility in business models can be viewed as an opportunity for the growth of the service integration and management market. Many organizations face flexibility issues while implementing changes in their process flow, which often generates the need for a flexible multi-supplier management model. At present, many organizations are implementing a stable model, but with the increasing adoption of a dynamic multi-vendor outsourcing model, the multi-supplier management model is expected to have increased prevalence in the near future.

Market Competitiveness

Players in the service integration and management market are aiming at improving the speed and efficiency of new service providers and providing flexibility to their customers for the substitution of uneconomic or poorly performing service providers.